How much system capacity can be gained by adding capacity

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Assignment

DQ 1

How is process selection related to product design and capacity determination?

DQ 2

Read Problem 6: The "Monique Food Processing Company" in Chapter 8 of your text.

Monique Food Processing Company produces light snacks that can be heated in a microwave. The following steps are included in the process:

Steps

Description

Capacity (Units/Hour)

1

Prepare food 

200

2

Measure and place in plastic pouch 

175

3

Prepare cardboard box 

200

4

Insert pouch into box 

300

5

Shrink-wrap box 

200

a. What is the system capacity, and which is the bottleneck department?
b. How much slack (unused capacity) is available in other departments?
c. How much system capacity can be gained by adding capacity to the bottleneck?
d. What are the key factors that determine when to add capacity?
e. Why would an organization want to reduce its capacity?

Reference no: EM131447900

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